Exam 13: Pricing, Promotion, and Distributing Products

Superior Stereo Systems, a cutting-edge manufacturer of stereo speakers, sells the popular Superior V model and recently introduced the Superior VI, a brand-new speaker technology. In the past, Superior sold all speakers directly to retailers. The firm was recently approached by a wholesaler who would like to carry its line of products. The company's marketing manager, Deanna Thorpe, is not sure working through a wholesaler will be worthwhile. In fact, Deanna suspects that online sales would simplify marketing channels, cut costs, and improve profits for Superior. Why might Superior wish to use a wholesaler rather than selling directly to retailers?

List three forms of direct response retailing.

How are price lining and psychological pricing used to determine prices of products?

Most large and successful companies do not have a department to manage their relations with the public since they already have a positive company image.

When is discounting used to set prices?

List three basic types of bricks-and-mortar retail outlets.

Why might a retailer price a television at $299.99 rather than $300.00?

Julia, owner of Julia's Craft Supply Store would like to take advantage of the fact that customers are not completely rational when making buying decisions and may prefer prices that are not stated in even dollar amounts. Which pricing tactic is she interested in?

Explain electronic retailing.

Identify and briefly discuss five of the various advertising media.

Personal Devices Inc. is a manufacturer of premium cell phones. Most of the company's handsets are equipped with high-end features such as large internal memory, sophisticated texting, camera and music functionalities, and data transfer capabilities. The company is planning to enter the Indian market. One of the senior managers argues that a stripped-down, low-priced model without any extras could be the starting point. The company can sell additional features added to the base model at higher price points. Which of the following, if true, would most strengthen the senior manager's argument?

What are Superior's options in promoting the Superior VI?

Which type of promotion is outside of the company's control?

Lawless Container Corp. produces packaging containers and sells them to industrial buyers such as Fisher-Price and Mr. Coffee. Lawless is a

Frisell says: The most important online threat facing us today is identity theft. Consumers have to rely on online shopping today more than ever, and they are exposed to all kinds of dangers by people gaining access to credit cards, bank information, and Social Security numbers. Identity theft is a lucrative "business," and identity thieves will keep finding new ways to rip off consumers as long as online shopping and transactions are widespread. Scofield responds: Consumers have suffered from online theft, but the most far-reaching danger to people today from the Internet is viruses and malware. These have the capacity to take down entire networks, affecting both businesses and consumers. It's not clear that anti-virus measures will ever be able to keep up with all of the threats that are out there. Which of the following statements would Scofield most likely agree with?

What is the ultimate objective of any type of promotion?

Brian works at the local grocery store. His supervisor asked him to use point-of-sale displays. Brian needs to

What do e-intermediaries do?

What is the appeal of merchandise in a factory outlet?

Sally is selling bracelets for $16.00 and the markup is $6.40. What is the markup percentage?